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THE FIRST ANNUAL CONFERENCE OF REPRESENTATIVES OF DEPARTMENTS, GOVERNMENT, THE BIGGEST COMPANIES IN SERBIA, THE MOST EMINENT PR AGENCIES AND THE MEDIA ON THE TOPIC

CORPORATE SOCIAL RESPONSIBILITY




Belgrade, October 9 2007
The Conference on ''Corporate Social Responsibility'' – Challenges and Trends'', organized by ''Economist Media Group'' which took place on September 27 2007 in "Hayatt Regency" Hotel in Belgrade, was attended by high officials of the Ministry of Labor and Ministry of the Economy of Serbian Government, Radovan Jelasic, governor of the National Bank of Serbia, General Directors of the most eminent companies, non-government organizations, PR and marketing agencies in Serbia, as well as editors of the most significant media.

- ''Social responsibility of Serbian companies is reflected first of all in their ethical conduct towards employees, and only then in donations and sponsorships in local and global community. It is only possible to conduct a social dialogue with socially responsible companies. While we have good experience with a majority of multi-national companies, such as U.S. Steel, on the other hand, we have the biggest problems with Serbian ''proprietors'', said Mr. Jovan Stojkovic in the discussion, communicating the positions of the Metal Workers Branch Union ''Nezavisnost''.

The process of Corporate social responsibility, or ‘’CSR’’, in contrast to developed countries, is still a novelty in Serbia. The interest of any company in the world, as well as the one operating in Serbia, is to make as highest profit as possible, but its interest does not end here. A company being bigger, its responsibility for the development of the society it operates in, is also bigger. In this respect, the issues of corporate social responsibility attracted the attention of the biggest world companies, as well as the media and the public in general.

In line with such global developments in the area of operations and activities of big corporations, the "Economist Media Group" launched a project of annual conferences on the topic ‘’Corporate Social Responsibilities” (CSR). The first one took place on September 27 2007 in "Hayatt Regency" Hotel in Belgrade and it gathered the most important representatives of all relevant companies, as well as representatives of the governing establishment, non-government organizations, PR and Marketing Agencies, on the highest level, and editors of some of the most significant media in our country.

THE EXAMPLE OF U. S. STEEL: «FOR BETTER LIFE IN SERBIA»

Douglas Matthews, General Director of U. S. Steel Serbia, d.o.o. (general sponsor of this Conference), stressed that USS company pursued the objectives of a corporatively responsible company, according to two plans: internal, where the most important are employee job safety and health protection, and external plan, where it works as a ‘’good neighbor’’ on the well-being of the community it operates in. Heavy industry doesn’t mean a dirty and obsolete technology, and this will be proved by USS Serbia d.o.o. on its example. The first in the value hierarchy of USS Serbia, d.o.o. is employee job safety. As an example,
the condition that some company cooperates with USS is that employees of those companies should go through job safety training too, the same as employees of USS. The other value of USS Serbia, d.o.o. is its attitude concerning the environment. Environmental protection is one of the basic requirements of business policy, quality assurance policy, technology and economy of U. S. Steel. The Code of ethical business conduct is also an important value in USS. When the word is about donations, the most important are those in the area of medical care and services, donations for young population. The latest example is the reconstruction of the University Library "Svetozar Marković" in Belgrade. They think they are a good example and that they set specific standards in the environment they operate in. In cooperation with the Government, through such conferences, they wish to contribute to the overall improvement of Serbian society.

CSR – ASPECTS AND SPHERES OF ACTION OF THE BIGGEST COMPANIES IN SERBIA

The first panel of the Conference was dedicated to the subject of „CSR aspects and spheres of action”.

Radovan Jelašić, Governor of National Bank of Serbia, thinks that the process of corporate social responsibility is crucial in further transition process in Serbia, and in that sense, the NBS shall make its contribution. He thinks that we have three groups of companies in Serbia. The first ones that should not be reminded of corporate social responsibility, the second group that should be reminded of periodically, and the third for which there is no use of reminding - because they don’t know what this is about !?

Lens Clark, the UN coordinator in Serbia, says that CSR helps us to reach the basic milennium targets: decreasing poverty, healthy environment.
In that respect, the involvement of businessmen is of great importance. From the UN aspect, the engagement of Serbia in the CSR process is essential, meaning a stable macroeconomic policy, economic prosperity, privatization. Lagging behind in certain spheres is evident. For example, less than 13% of disabled persons in Serbia is employed. Moreover, less than 50% disabled persons in Serbia complete the Elementary School. Such persons spend almost their entire life behind closed doors in their apartments. There are also some other problems such as massive fish death, fires, fight against corruption. So, how should one act further? In his opinion, an agreement between companies has to be made in Serbia too and one has to work on solving those problems. He praised U.S. Steel’s efforts made in this area.

Per Stenbeck, director in charge of funds collection in UNICEF, says that his job is to collect the sum of approx. one billion US dollars a year from the private sector, companies and foundations throughout the world. Who are the greatest donors: individuals, companies or foundations? He says that the greatest donors are individuals. As an example, in the USA, from donations amounting to 250 billion dollars, about 90% are individuals donations. However, a higher increase in companies participation is noticeable. This was especially felt after the experience with ‘’Cunami.’’ When reasons are in question – why does someone give money for these purposes, in his opinion, two reasons are the most important: philanthropy, namely, giving money, because one feels it from the heart, and the other are business reasons, such as investment in sponsorship and marketing.

Gustavo Navaro, General Director of "Holcim" in Serbia, says that his company, as world leader in cement production, fulfills all its obligations in Serbia from the Purchase and Sales Contract. During these 5 years in Serbia, in the town Novi Popovac, they invested about 90 million dollars, i.e. 5 million dollars more than they were obliged to invest in accordance with the Contract. "Holcim" currently employs 458 workers whose average pay is Din. 55.000,
that is much above average pay in Serbia. They think it is a good pay for employees. When the word is about social program, they think they had one of the best programs in Serbia. Each worker, who left the company voluntarily, got €15.000. Respecting human rights and the same chances for all employees are essential values of this company. When environmental protection is in question, ‘’Holcim’s’’ goal is to reduce gas emissions by 30% by the year 2010.

Stavros Ioannou, President of the Executive Committee of „Eurobank EFG Savings Bank”, as one of the most active banks in the South-East Europe, says that this bank invests in education, ecology and health care. According to evaluations of the Bank’s International Commission, they grant scholarships to Serbian students in the amount of €1.000. In the ecology domain, they invest in the upkeep and making new parks, i.e. green areas in Serbia. An example are donations such as: Botanical Garden in Belgrade, parks in Pancevo (€75.000), the Danube Park in Novi Sad (€100.000), Pozarevac (€75.000), Nis, Subotica, Kragujevac, Bezanijska Kosa. In the field of public health care they invest in the purchase of diagnostics equipment, and they invested €6 million so far for this purpose. Also, they help disabled persons, blind persons, through the project titled ‘’To everyone without difference’’. When employees are concerned, they invest in trainings, remuneration (reward) systems, the so-called ‘’breakfast with managers’’. They consider the invested funds as a ‘’trigger for the future’’.

Goran Pekez, director in ‘’Japan Tobacco” and executive director of Japanese Chamber of Commerce, says that this company is the third biggest producer of cigarettes in the world. They bought the tobacco industry in Senta, Serbia, and they employ about 250 permanently employed workers, 250 periodical workers and 6000 farmers who are tobacco manufacturers. Approximately 1.100 families in Serbia live from Japan Tobacco. When treating employees is in question, the basic values are ‘’0’’ injuries at work, good medical care, being identical for both the general director and any employee. This company gives 1% of its profit for donations in Serbia. He thinks that Serbian companies are still reserved in the CSR process in contrast to foreign companies, and this is where the Government has to encourage them.

Miloš Nikolić, manager of the group for technological solutions in „Hewlett Packard” thinks that the CSR process is within the sole „DNK” of „Hewlett Packard”. This company originated in the ‘’silicon valley’’ in the USA, and the first donation in 1940 was 5 dollars, and they are presently amounting to millions of dollars. They invest in several areas, and primarily in education, environmental protection, privacy, guaranteed to employees and users.

Mark Emanuelson, director in ‘’Cysco Systems”, says that CSR is a magnificent thing and that all companies should act locally and globally. When the word is about their employees, according to polls that have been conducted, 85% of employees are satisfied. There is a project in Serbia titled ‘’Woman’’, with the view of providing computer training for unemployed women as a condition that they apply for a position.

Vladimir Gajić from the Ministry of Labor and Social Policy, thinks that CSR still doesn’t function well in this country. He emphasized the importance of the need for amendments to the regulations, social dialogue through SEC, collective bargaining and observance of collective agreements by employers, especially in the areas of job safety and health protection. Unfortunately, in his opinion, pays are the most important in collective agreements and CSR is less important.

CSR AND THE COMMUNITY: WHO INVESTS THE MOST AND WHERE ARE FUNDS MOSTLY INVESTED ?

In the second panel addressing the topic: „CSR and the community” the following people participated: Uranija Kozmidis Luburić, State Secretary for Science in the Ministry of Science of the Rep. of Serbia, Michael O’ Leary Collins, General Director of „GREENHOUSE INVESTMENTS, UK”, Miodrag Stojadinović, PR manager of „PHILIP MORRIS”, Andrea Brbaklić, director of corporate communications - „ERSTE” (clients: Mercator, InBev) Nemanja Brković, director of corporate communications of US STEEL, Milka Damjanović, project manager for disabled persons of UNDP, Gordana Radojević, deputy director of the life insurance department „WIENER STADTICHE INSURANCE ADO” Belgrade, Monika Živojinović, PR manager of the Concern „BAMBI-BANAT”, Jelena Šarenac, director of corporate communications of ‘’HENKEL” (clients: Mercedes-Benz, Daimler, Chrysler, Coca Cola), Sandra Štajner, executive director of corporate communications of ‘’TELENOR” (Actavis Balkan, Fox News Channel), Tamara Vlastelica Bakić, coordinator for buyers and marketing in ‘’DELOITE d.o.o.” and Jasmina Beba Kuka, UNICEF consultant (project manager of ‘’School without violence”).

In the reports within this panel, those present have been informed about the companies investing mostly in CSR in Serbia, and about the examples of concrete actions they have launched. All these reports were accompanied by outstanding video presentations, among which the presentation on the reconstruction of the University Library ‘’Svetozar Markovic’’ by US Steel was especially highlighted.

All participants stressed the CSR process as important for sustainable development of companies they are employed in. In that respect, it is very important for companies to be entered in the list of ‘’Dau Jones Viability Index’’. One should know that ‘’Dau Jones Viability Index’’ is the first global index tracking and evaluating the leading companies of the world on the principles of sustainable development.

CSR AND THE PUBLIC: PUBLIC AND MEDIA RELATIONS

In the third panel addressing ‘’CSR and the public”, the moderator was Biljana Stepanović, general director of ‘’ECONOMIST MEDIA GROUP”, editor in chief of the monthly magazine „Bankar” and author of TV show „Buđelar” on ‘’B 92”.

Mr Bora Miljanović, director of one of the leading Serbian PR Agencies ‘’MC CANN-ERICKSON PUBLIC RELATIONS” (whose clients are: PR Division of the Royal Palace in Belgrade, PR Division of BK Group, big companies such as: Holcim, Porsche Leasing, Interex, political parties GSS, DS, etc.) says that the CSR process can only be spurred within a triangle: State-Company-Media. Times are changing even nowadays. In order that a company ‘’enters’’ the national media, it needs at least €100.000 (much more than before). Also, a very important moment is company directors attitude towards the CSR, i.e. if they have understanding for this or not. In his opinion, 95% of foreign companies observe the CSR and only 5% of our ‘’bosses’’ do. He thinks that the media should give more consideration to good actions, social topics and the environment, and that they should not be too tolerant to financiers.

Žarko Sakan, director of the prestigious PR Agency ‘’NEW MOMENT” from Belgrade, which is only one of 10 branch offices of this company in the region (has the following clients: U.S. Steel, Lafarge, Eurobank EFG Savings Bank...) spoke about the CSR viewed from creativity aspect. In his opinion, the CSR in Serbia is in its initial phase, and the media are very important for popularization of this process, so they should spur this process and encourage businessmen. PR Agencies are in the CSR process between clients and the media.
It is substantial that PR actions are guided in compliance with the nature of a company’s brand. If it is not so, then PR actions concerning the CSR can have negative conotations in the public. He gave an example of ‘’creative economies’’, namely, there are countries where ideas are considered as ‘’crucial for development of a society’.’’ There are countries in which the music industry has 10 times more income than the automotive industry.

Andreja Pavlović, senior consultant of the most famous Croatian PR Agency „HAUSKA & PARTNER”, director for major clients and CR programs specialist, thinks that corporate philanthropy isn't the only reason why companies invest in the CSR, but it is often the result of a cheap PR campaign. As an example, she stated a PR action initiated by a company which gave chocolates as a present in the hospital «Narodni front» to babies' mothers, on Valentine Day. In her opinion, CSR and sustainable development are very important.
She thinks that great power of companies means their high level of responsibility too.

Stevan Vujasinović, designer of projects in UNDP, says that it happens sometimes that the things big companies announce in public, their employees do not recognize. He thinks that one should devote much more attention to internal PR public, namely to employees.

Maja Šotra, supervisor for communications in «DIN-PHILIP MORRIS» and David Dowse, regional director of «MMD», PR consultant to the companies: BASF, Discovery Channel, Erste Bank, Holcim, IBM, IKEA, Mars, MITTAL STEEL, Visa International ... think that CSR is an opportunity for the companies to work together with the local community. David thinks that CSR should be planned and practiced in a long time period, because this has impact not only on company's reputation but also on profit. He pleads for better relations with employees and clients, buyers and suppliers. The following people also took part in this panel's discussions: Monika Živojinović from the Concern «Bambi-Banat» and people from the media: Radomir Diklić, director in «BETA» Agency, Mijat Lakićević, editor in chief of «ECONOMIST MAGAZINE», Dragan Stojev, editor in «RTS», Zoran Pavić, editor of the cult TV show «JAPI», Vesna Savić–Đukić, of UNICEF (manager of the project «School without violence») and Gordana Bulatović, editor of the economy column in «VEČERNJE NOVOSTI». The people working in the media have stated regretfully that ''bad news is good news'' in Serbia today, in the sense that it increases the number of copies and sale of newspapers, which is often contrary to the principle of journalist's profession. People sometimes like good news, stories, but this isn't often the case. When journalists report on CSR actions, there are often examples of ''obscured marketing.''

TRADE UNIONS AND CSR: A GOOD «NEIGHBOR» AND A GOOD «BOSS»

Joining the discussion of the third panel, mr Jovan Stojković, adviser for informing and Trade Union's PR in the Metal Workers Branch Union «Nezavisnost», asked a question to those present: how do they see the unions role and way to join the CSR process? In his opinion, the fact that the word ''trade union'' has not been even mentioned in all three panels, speaks for itself.

If we would divide fictitiously, for an instant, the world we live in, into the ''world of capital'' and the ''world of labor'', it is important how employees themselves view CSR, the ones who make profit, that is partly used for donations and sponsorships. It is not enough for the companies to be only socially responsible in the role of ''good neighbors'', but first of all, as ''good bosses'', that they are responsible through internal PR to their employees.

Probably, many people ask themselves why a trade union is present at such a gathering? First, the MWBU ''Nezavisnost'' starts from the fact that the time has come when ''knowledge costs and ignorance even more'', and that one has to learn from the better and not from the worse. For this reason we are here to learn from the best companies in Serbia and the region: to hear, see, find out, remember, and apply this knowledge. We think that the ''time of sticks and shouting'' passed a long time ago and that we expect such social dialogue with employers, in the future, in which the key ''weapon'' will be knowledge, principles, ethics, the public's and employees trust. Therefore, trade unions need a comprehensive and high-quality quantum of knowledge.

For MWBU ''Nezavisnost'' the CSR process is very important, because social dialogue can be conducted only with socially responsible companies. The MWBU ''Nezavisnost'' performs its activities in 250 business entities in Serbia and gathers about 33.000 members. While we have positive experience in social dialogue with multinational companies, such as U. S. Steel, the world leader in steel production, which is, in MWBU's opinion, ''tough'', but at the same time, a fair, decent and ethical social partner, on the other hand we have big problems with ''Serbian bosses''. For some of our ''bosses'', safety, health protection, PPE and employee earnings are rather as it was in late feudalism than in early capitalism. Why? The CSR process in Serbia needs, first of all, the industrial culture. The reasons are historical, therefore, the arrival of multinational companies, as emissaries of industrial culture in Serbia, is of great importance.

Trade unions themselves are not ''Serbian invention'', but a product of world's industrial culture. Trade unions must be also socially responsible, primarily to their members, that they do not make promises to employees they cannot keep, to the companies in which they perform their activities and the community in which they are active. Inexpensive marketing and PR are a kind of a boomerang. When we speak about industrial culture in Serbia, there is a prejudice that trade unions are reserved exclusively for ''locksmiths, carpenters, tailors, drivers, cleaning personnel ...'' and they are often degraded, which is unjust. This is quite different in the world, because all educational and qualification categories of people enter trade unions. For example, it is unknown in this country that one of the most brilliant master minds of the world, Albert Einstein, was once a trade union president at Princeton University. For MWBU «Nezavisnost» it is not so important how much money any company gives. It is more important what the money is spent for. The opinion of MWBU «Nezavisnost» is that in the CSR process one should invest mostly in ''knowledge'', said Stojkovic at the end of his speech.

Žarko Sakan of «New Moment», tried first to answer the question concerning trade union's role in the CSR process. He says that his PR Agency monitors on a regular basis the activities of the above mentioned trade union in the area of unionist PR and that all they have seen is praiseworthy and far ahead of other unions. He says that he sees trade union's role in stimulating companies and making concrete proposals to companies for which purpose the funds in the CSR process can be used.

Stevan Vujasinović, designer of projects in UNDP, entering the discussion on trade union's role in CSR process, says he agrees with the colleague and the opinion of MWBU ''Nezavisnost'' that investing in ''knowledge'' is the most profitable. Trade unions have devoted great attention so far to the amount of severance pays within social programs. When they get the money, workers often spend it on used cars and similarly, and when they spend it all they go out in the street again, in front of the Government's building, and they start whistling. One considers that workers should be, first of all, educated, and only then give them the money. The chances that they continue their normal life are then much bigger.

Andrea Pavlović, of PR Agency ''Hauska & Partner” entered the discussion on trade unions and CSR with the question posed to present editors of the biggest media in Serbia – why don't they announce and publish that there are trade unions in Serbia that wish, first of all, to acquire good knowledge, and not at any cost, with poles, barricades and flags in the street? This is good, excellent news both for Serbia and the EU, and not only to write about donations, which are often an obscured marketing.

The following eminent experts in this field took part in the fourth panel discussion titled: «Does CSR refer only to environmental protection» : Gordana Perović, director of the Recycling Agency of the Rep. of Serbia, Margareta Milosavljević, coordinator in «Holcim», Tomislav Mićović, «NIS», Miodrag Savić, «Henkel», Branislav Božović, Secretary of the City of Belgrade for environmental protection, Luiz Heeren, general director of «British American Tobaco, d.o.o.», Miloš Uzelac, manager in «Ball Packaging Europe Belgrade Ltd.», Dimitrije Knjeginjić, «Lafarge Bfc» and Ljubica Ćulafić, director of the Environmental Protection Department in U. S. Steel Serbia, d.o.o.

 
     
 
 
 
 
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